XRP is currently trading 18% below its May peak, suggesting a possible decline towards $1.70. The price action has formed an inverted V-shaped pattern on the daily chart, indicating a potential 20% price drop from the current levels, targeting the $1.72 demand zone.
The Relative Strength Index (RSI) has decreased, reflecting increasing downward momentum. Analysts note that XRP has broken below a rising channel and might continue to drop until it reaches $1.72, where it could find support.
XRP Ledger Network Activity Decline
On-chain data reveals a significant drop in XRP Ledger network activity. New addresses have decreased from a high of 15,800 daily to the current 4,400, suggesting declining network adoption and user engagement. Daily Active Addresses (DAAs) are also significantly below the year-to-date peak recorded in March.
Declining network activity typically signals upcoming price stagnation or drops, as lower transaction volume reduces liquidity and buying momentum.
With only around 31,200 daily active addresses, user transactions have declined significantly, possibly signaling reduced interest or a lack of confidence in XRP's near-term outlook.
The XRP Ledger has experienced a significant drop in network activity over the last two months. Onchain data from Glassnode reveals that the Daily Active Addresses (DAAs) on the network are now far below the year-to-date peak of 608,000 DAAs, recorded on March 19.